'Planning Commission endorses Andhra on gas pricing'

The Andhra Pradesh government on Tuesday claimed that the Planning Commission has also taken a view similar to that of the state on the 'discovery of market price' with regard to the pricing of gas in the K-G Basin.

"Besides the energy ministry, the Planning Commission is also learnt to have endorsed the view of the chief minister that the discovery of market price will be to the advantage of the seller and to the disadvantage of the consumer," the chief minister's office said in a press release today.

DV Somayajulu, economic adviser to the Andhra Pradesh government, when contacted said the government had the information about Planning Commission's reservations on the price discovery formula mooted by the Reliance Industries (RIL).

"This is a clear sign that the support from within the Government of India is growing on the gas pricing issue, especially in support of an independent gas regulator to determine the natural gas price to be produced from the K-G Basin," he told Business Standard.

Chief minister YS Rajasekhara Reddy, at a meeting especially held to discuss about the Prime Minister's visit to Hyderabad, also decided to use the opportunity to explain in detail the state's demands on the issue, the press release stated.